The Union finance ministry has asked market regulator Securities and Exchange Board of India (Sebi) to probe the alleged “dark fibre links” between the BSE and the NSE, and has been informed, in turn, that a “preliminary fact finding” exercise is already underway.
The BSE and the NSE have also been asked to provide inputs.
When asked about the issue, the former declined to comment, and the latter said the allegations were baseless.
Business Standard has reviewed the letters sent by the finance ministry to the Sebi over the past few months, along with the internal notes, which were obtained under the Right to Information (RTI).
The documents showed that the ministry swung into action after receiving, in November, a whistle-blower account that talked about the “dark fibres” and other issues in high frequency trading (HFT).
According to the ministry note sent to the Sebi, “The recent letter from the whistle-blower dated October 3, 2015, talks about ‘dark fibre’ links between the NSE and the BSE that is available to select investors. This puts ordinary investors as well as large institutional investors at a serious disadvantage. It also opens the stock exchanges to unknown and unforeseen risk during periods of extreme price volatility.”
Overseas investors have pumped in nearly Rs 6,000 crore in the Indian capital markets in a fortnight ended September 13, mainly on the back of newRBI Governor Raghuram Rajan announcing various measures to boost the depreciating local currency and revive economic growth.
Inflows in equities were about Rs 6,372 crore ($966 million) during September 2-13, while there was a pull-out of Rs 382 crore ($64 million) from the debt market, translating into net inflows of Rs 5,990 crore ($922 million), as per latest data available with market regulator Sebi.
In August there was a net withdrawal of nearly Rs 16,000 crore (about $2.5 billion) from the domestic capital markets. Read More
A total of 50 corporate debt securities got the top investment grade credit ratings in the first four months of the current fiscal — the lowest number of such high ratings for this period in over ten years.
The number of debt issues that got non-investment grade ratings between April-July period of current fiscal 2013-14 also declined to 377, from as many as 1,249 in the same period of the previous financial year, according to data compiled by Sebi, which regulates credit rating agencies (CRAs) in India.
Various CRAs assigned a total of 720 long term corporate debt securities between April-July this fiscal, including ‘highest safety investment grade (AAA)’ rating for 50 of them.
The 50 AAA-rated issues together involved debt securities worth about Rs 4.52 lakh crore, as against a total amount of about Rs 6,084 crore for 377 issues that were assigned ‘non-investment grade’ ratings.
AAA rating is assigned to highest-quality bonds that face the lowest risk of default, while ‘non-investment grade’ applies to the low-quality issues. An AAA rating is followed by ‘High Safety (AA)’, Adequate Safety (A)’ and ‘Moderate Safety (BBB)’.
For April-July period, 102 issues got high-safety (AA) rating, 47 were ‘adequate safety (A)’ and 144 got ‘moderate safety (BBB)’ ratings. Read More
Investments into Indian shares through participatory notes (P-Notes), a preferred route for High Networth Investors and hedge funds from abroad, rose to Rs 1.48 lakh crore (about USD 24 billion) in July.
According to the latest data released by the Securities and Exchange Board of India (Sebi), the total value of P-Note investments in Indian markets (equity, debt and derivatives) increased to Rs 1,48,118 crore at the end of July after hitting a 11-month low of Rs 1.47 lakh crore in June.
P-Notes, mostly used by overseas HNIs (High Networth Individuals), hedge funds and other foreign institutions, allow them to invest in Indian markets through registered Foreign Institutional Investors (FIIs), while saving on time and costs associated with direct registrations.
Besides, the value of P-Notes issued with derivatives as underlying, stood at Rs 94,814 crore at July-end. Read More
Investments into Indian shares through participatory notes (P-Notes), a preferred route for HNIs and hedge funds from abroad, hit an 11-month low of Rs 1.47 lakh crore (about USD 25 billion) in June.
According to the latest data released by the Securities and Exchange Board of India (Sebi), the total value of P-Note investments in Indian markets (equity, debt and derivatives) declined to Rs 1,47,498 crore at the end of June after hitting a six-month high of Rs 1.68 lakh crore in May.
The June figure has reached the lowest level since July 2012, when the cumulative value of such investments stood at Rs 1.29 lakh crore.
P-Notes, mostly used by overseas HNIs (High Networth Individuals), hedge funds and other foreign institutions, allow them to investin Indian markets through registered Foreign Institutional Investors (FIIs), while saving on time and costs associated with direct registrations. Read More
After the noted jewellery retailer has seen his market cap drop to a mere Rs 1200 crore, against an annual revenue of Rs 10,000 cr. A Bombay bull known for oversized bets in AP Paper Mills and Aban Loyd is believed to have been badly trapped in the counter. So large are his positions in the counter-declared and Benami that they cannot be settled within the official framework. Forensic sleuths from Sebi in convivance with the honchos from BSE and NSE are probing the developments. All this may be true or totally fallacious but it is doing little to boost the psyche of the shareholders that comprise the float of roughly Rs 500 crore and who see their investment value plunge 5 per cent daily on volumes of 1200 shares.
Extensive collateral damage has been caused to the financial system including the host of brokers who are counterparties or just honest investors. They are surely getting margin calls daily as are the promoters.
Hearsay has it that large lots of Gitanjali are available for settlement at Rs 60 per share. If true, it does not seem likely that the stock sinks even below such whispered levels.
High time the GOI, CCI, Min Of Corp Affairs, Sebi and Exchanges intervened to stop the sham called :Gitanjali”. The stock should be suspended from trade, till malicious rumours get taken care of.
Investments into Indian shares through participatory notes (P-Notes), a preferred route for HNIs and hedge funds from abroad, hit six-month high of Rs 1.68 lakh crore (about USD 28 billion) in May.
According to the latest data released by the Securities and Exchange Board of India (Sebi), the total value of P-Note investments in Indian markets (equity, debt and derivatives) rose to 1,68,263 crore at the end of May.
The May figure has reached highest level since November, when the cumulative value of such investments stood at Rs 1.77 lakh crore.
At the end of April, foreign investments into Indian markets through P-Notes stood at Rs 1.57 lakh crore. Read More
India’s capital market regulator on Tuesday tightened the norms for share buybacks, moving to arrest suspected misuse of stock repurchases by listed companies in recent years.
Companies would have to ensure they spend at least 50% of the money earmarked for buybacks, the Securities and Exchange Board of India (Sebi) said after a board meeting. That doubles the current minimum of 25%.
Sebi’s new rules will require companies opting to buy back shares to create an escrow account in which they would need to keep at least 25% of the amount earmarked for the repurchases.
Should they fail to meet the 50% target, they would forfeit a sum equivalent to 2.5% of the amount allotted for the buybacks.
In a buyback, a company repurchases shares from securities holders, employees or on the open market, primarily to return surplus cash to shareholders, support the stock price during market weakness, or increase the value of underlying shares. Read More